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Dream Bakery among several Austin bakeries to close doors in recent months

Owner Karen Fry said the rising cost of food and labor shortages pushed her to make the decision to close her bakery.

AUSTIN, Texas — Inflation is taking a toll on small businesses in Austin, including several locally owned bakeries.

Karen Fry owned Dream Bakery for six years. It was a gluten-free bakery that served croissants, cinnamon rolls and cakes.

"Things that you can't necessarily find in other places if you are gluten-free were the things that customers enjoyed the most,” said Fry.

But Fry said rising costs and other challenges forced her to close her business.

"With all the increases in food costs, labor shortages, it has just been too much, so our sales fell in August and our prices just kept going up. We tried but we ran out of gas," said Fry.

RELATED: South Austin's Crema Bakery & Cafe set to close on Sept. 17

Fry said it was tough to close her business.

"Anybody that's in this business isn't doing it for the money, right? You're doing it because you love what you do and you love your customers. It was really, really hard to make the decision," she said.

Fry's bakery is one of four Austin bakeries that have closed within the last few months. She said a lot of those businesses are also dealing with the higher costs. She said she was thankful for the six years she had and will see what the future holds.

"I feel like we left it all on the field. We gave it our best shot and I am looking forward to whatever comes next," she said.

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